Hello, 4 yrs ago we moved from PA to WV. We are renting our home in PA because we could not sell it at the time. We bought a home in WV at that time and have recently sold it for a profit, ========>>I guess your home in WV is your primary home; usually it is the home in which you live most of the time, whether you own it or rent it. A condominium, cooperative, houseboat or mobile home may be a principal residence.so, In most cases, you can make tax-free profits of $250k, or $500k depending on your filing status, every time you sell a home. you can make tax-free profits of $250k, or $500k depending on your filing status, every time you sell a home. you need to have lived in the house for at least 24 months in the 5-year period. Any profits in excess of the exclusion caps ($500k for married couples; $250kfor singles) will be taxed at the new lower capital gains tax rate, 0 or 15% depending on your tax bracket.
and used that money to purchase another home in WV this past year. We now want to move back to the PA property. If we sell the new WV home, what are the tax implications? I am unsure if there will be any gains or losses in selling this current primary home. I am thinking there will be losses due to agent fees.==>>>then no tax liability or no loss deduction on sale of your primary home in WV; A loss on the sale of a personal residence is considered a nondeductible personal expense. You can only deduct losses on the sale of property used for business or investment purposes. |